Inflation slowed down to 2.6 per cent in December

The year-on-year change in consumer prices,
i.e. inflation, calculated by Statistics Finland was 2.6 per
cent in December. In November it stood at 2.9 per cent. The
slowing down of inflation was primarily caused by falls in the
prices of phone call charges, food and liquid fuels in December. In
2007 the average inflation was 2.5 per cent.

Consumer prices were pushed up most in the year
by increased cost of housing. Housing prices were pushed up
primarily by risen housing loan interest rates, higher prices of
owner-occupied flats and real estate, as well as rent increases.
Risen running costs of vehicles, increases in the prices of food
and higher interest rates on consumer credits, as well as increases
in restaurant and café prices also had an impact on inflation. By
contrast, the rise in consumer prices was curbed most in December
by fallen prices of used passenger cars, entertainment electronics
and computers.

From November to December, consumer prices fell by 0.2 per cent.
This resulted mostly from falls in the prices of liquid fuels and
vegetables.

Each mid-month, Statistics Finland interviewers collect around
60,000 prices on 497 commodities from approximately 2,700 outlets
for the Consumer Price Index. In addition, some 1,000 items of
price data are gathered by centralised collection.

Finland's inflation indicators, December
2007

Point figure

Year-on-year change

Monthly change

Consumer Price Index 2005=100

105,1

2,6 %

-0,2 %

Cost-of-living Index 1951:10=100

1 678

Harmonised Index of Consumer Prices 2005=100

103,6

1,9 %

-0,2 %

According to preliminary data, inflation in the EMU countries
was 3.1 per cent in December

According to the preliminary data on the
Harmonised Index of Consumer Prices, the rate of inflation in the
EMU countries in December was unchanged from November, i.e.
3.1 per cent. The corresponding figure for Finland was
1.9 per cent in December.

Eurostat's estimate of inflation in the EMU
area is based on preliminary data from EMU Member States and on the
price development of energy. Eurostat will publish detailed data on
Harmonised Indices of Consumer Prices for December on January
16.

A link on the left side navigation bar leads to Eurostat's
Harmonised Indices of Consumer Prices page.